While several mainstream game studios have taken a notable step back from integrating blockchain technology, three blockchain gaming executives say it's only a matter of time before they change their minds.
In July of last year, Minecraft developer Mojang Studios announced an NFT ban and blockchain technology.
For November, Rockstar Games updated their website to stipulate that fan-operated servers for Grand Theft Auto V can no longer use crypto assets, specifically non-fungible tokens (NFTs).
Tearing NFT worlds? pic.twitter.com/5bEy5oqtjm
-DeeZe (@DeeZe) July 20, 2022
Walter Lee, game gRowth Leader in BNB Chainargues, however, that the ban is more related to NFT activities than blockchain technology in general and believes that once "more regulations are put in place" to ensure player safety, major studios will become more familiar with the ban. technology.
โThere is still a lack of education and regulation around Web3, therefore some users and companies are still skeptical about the benefits and scams that can often be associated with it,โ he said.
Mojang Studios noted carpet pulls around certain third-party NFT integrations, along with NFT wash trading and digital ownership issues, as reasons for the ban.
Lee believes that player demand will ultimately tip the scales on blockchain technology in mainstream games.
That being said, some gaming enthusiasts have a love-hate relationship with cryptocurrency, particularly when it comes to NFTs.
French gaming giant Ubisoft Entertainment was forced last year to backtrack on plans to integrate NFT into their games after player backlash.
An October survey by blockchain entertainment provider Coda Labs found that traditional gamers weren't fans of cryptocurrencies or NFTs in general, although they didn't seem to care as much about NFTs used in games.
โIf player demand for blockchain integrations increases, they are likely to revise their policies,โ Lee argued.
Grant Haseley, CEO of Web3 and mobile game development company Wagyu Games, told Cointelegraph that one success story is all it takes to drive widespread adoption:
โAAA studios will change their minds once they start ceding real market share to Web3 games. It only takes one Web3 game to explode for the others to take flight.โ
According to Haseley, the widespread hesitancy around adoption stems from fears that it will undermine the current business model of "the strictly entertainment-paying consumer."
โThey have a big thing going right now, the mobile gaming market, for example, has passed $100 billion and is trending up,โ Haseley said, adding:
"If you can make a game on the fly and still stay profitable without changing your model, why would you consider something radical that could have lasting effects on your consumer base?"
Justin Hulog, studio director and immutable game studioshared a similar perspective, explaining that because NFTs and cryptocurrencies fundamentally transfer ownership of digital assets from companies to players, it is not attractive for mainstream adoption.
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"GTA V became the most profitable entertainment product of all time, and it's no secret that a fairly significant portion of these earnings come from microtransactions containing in-game currency," he said.
โMicrosoft also introduced microtransactions to Minecraft some time ago; it is understandable that both companies want to maintain control over their in-game economies for financial reasons,โ he added.
According to a 2020 report From market research firm Junpier Research, loot boxes and other microtransaction-related features will bring game companies $20 billion by 2025.
โIf anything, this can even be interpreted as both companies acknowledging that NFTs and cryptocurrencies are real-world assets with value that could threaten their business model,โ Hulog said.
While he thinks it's "certainly a possibility" that major studios will embrace blockchain technology, he thinks they'll "probably start with something like adding support for cryptocurrency as a payment method for their games and services."
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